NY LEGISLATURE PROPOSES SWEEPING CHANGES TO THE WORKPLACE
On March 1, 2022, the New York State Senate passed a suite of landmark employment legislation. Though several of the bills still need to be passed by the State Assembly – and, of course, ultimately signed into law by Governor Kathy Hochul – Empire State employers should nevertheless review the measures now so they will be prepared if and when the bills become law. Below is a high-level summary of the key bills that were passed last week:
Additional limitations on non-disclosure clauses – Senate Bill S. 738 would invalidate any releases of claims – which are most typically included in separation and settlement agreements – where (i) the employee is required to pay liquidated (i.e., contractually pre-determined) damages or is required to forfeit all or part of provisions; or (ii) the agreement contains an affirmative statement, assertion, or disclaimer that the employee was not subjected to discrimination, harassment, or retaliation.
Unenforceability of “no rehire" clauses – If enacted, Senate Bill S. 766 would invalidate any releases of claims where the agreement at issue also includes a no rehire clause. Perhaps most critically, if a release is rendered unenforceable under this proposed law, the employer would still remain bound by all other provisions of the settlement agreement, including the obligation to provide the full separation or settlement payment to the employee as set forth in the agreement.
Expanded definition of retaliation under the NYSHRL – Senate Bill S.5870 proposes an expansion of the New York State Human Rights Law (NYSHRL) to prohibit retaliation in the form of disclosing an employee's personnel files because the employee opposed any practices forbidden under the NYSHRL, filed a complaint, or testified or assisted in any proceeding under the NYSHRL, unless such disclosure is made in the course of action or other judicial or administrative proceeding as permitted by law.
Proposed extension of the statute of limitations under the NYSHRL – Two bills seek to drastically expand the statute of limitations under the NYSHRL. Senate Bill S.566A proposes modifying the statute of limitations to report discrimination to the New York State Division of Human Rights from one year to three years.
For further information, please contact Kevin McKernan or kevin@kmckernan.com or 718-317-5007